Building operations company Johnson Controls (NYSE: JCI) will be reporting earnings this Wednesday before the bell. Here’s what investors should know.
Johnson Controls beat analysts’ revenue expectations by 0.7% last quarter, reporting revenues of $6.05 billion, up 2.6% year on year. It was a satisfactory quarter for the company, with a solid beat of analysts’ organic revenue estimates but revenue guidance for next quarter slightly missing analysts’ expectations.
Is Johnson Controls a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, analysts are expecting Johnson Controls’s revenue to grow 1.5% year on year to $6.34 billion, slowing from the 6.7% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $1.20 per share.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Johnson Controls has missed Wall Street’s revenue estimates five times over the last two years.
Looking at Johnson Controls’s peers in the commercial building products segment, some have already reported their Q3 results, giving us a hint as to what we can expect. Apogee delivered year-on-year revenue growth of 4.6%, beating analysts’ expectations by 2.1%, and AZZ reported revenues up 2%, falling short of estimates by 2.1%. Apogee traded down 4.5% following the results while AZZ was also down 4.9%.
Read our full analysis of Apogee’s results here and AZZ’s results here.
Investors in the commercial building products segment have had steady hands going into earnings, with share prices flat over the last month. Johnson Controls is up 3.6% during the same time and is heading into earnings with an average analyst price target of $117.89 (compared to the current share price of $113.56).
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